Radico Khaitan Ltd witnessed significant institutional trading activity with a substantial block trade executed on the National Stock Exchange (NSE). The transaction represents one of the notable block deals in the alcoholic beverages sector.

Block Trade Details

The company recorded a major block trade with the following specifications:

Market Significance

Block trades are typically executed by institutional investors, mutual funds, or large stakeholders looking to buy or sell substantial quantities of shares without causing significant price volatility in the regular market. These transactions are conducted outside the normal trading mechanism to minimize market impact.

The transaction involving Radico Khaitan shares indicates continued institutional interest in the company. Such large-volume trades often reflect strategic positioning by institutional investors or portfolio rebalancing activities.

About the Transaction

The block trade represents a significant volume of shares changing hands at the specified price point of ₹2,757.30 per share. The total value of ₹99.15 crores makes it a substantial transaction in the alcoholic beverages sector, demonstrating the liquidity and institutional appeal of Radico Khaitan's stock.

Block deals are an important indicator of institutional sentiment and can provide insights into large investor behavior, though they may not immediately reflect in the stock's regular trading price due to their off-market nature.

Radico Khaitan delivered a standout performance in the October-December quarter (Q3 FY26), achieving record quarterly volumes while United Spirits faced headwinds from policy changes in Maharashtra. The contrasting performances highlight the divergent trajectories of two major players in India's alcoholic beverage market.

Record Performance by Radico Khaitan

Radico Khaitan posted exceptional results for Q3 FY26, demonstrating strong execution of its premiumisation strategy across key metrics:

The company's strong performance stems from effective execution of its premiumisation strategy and stronger sales growth compared to larger peers. Radico already derives approximately 65-70% of its portfolio from Prestige & Above brands, providing substantial pricing power in the market.

United Spirits Faces Maharashtra Challenges

United Spirits experienced a more challenging quarter, primarily impacted by adverse policy changes in Maharashtra:

Despite volume declines, United Spirits maintained revenue growth through strong premium portfolio performance and improved realisations. The company's portfolio is even more premiumised than Radico's, with nearly 90% in the Prestige & Above segment.

Maharashtra Policy Impact

The Maharashtra government implemented significant policy changes that particularly affected United Spirits due to its higher exposure to the state:

• Excise Duty Hike: Steep increases pushed Indian Made Foreign Liquor prices up by 30-50%
• Price Adjustments: Companies raised prices by 30-35% in response
• Maharashtra Made Liquor (MML): Introduction of lower-priced category produced and sold within the state
• Industry Response: Legal challenges over fair competition concerns

These changes forced consumers to consider cheaper alternatives and created revenue pressure for established players.

Market Segmentation and Pricing

The Indian alcoholic beverage market operates across four distinct price segments:

Analyst Outlook and Stock Performance

Analyst sentiment remains positive for both companies, with expectations of continued premiumisation trends driving long-term growth:

Radico Khaitan: 21 'buy' calls, 2 'hold' ratings, and 1 'sell' recommendation. Shares closed 5.4% higher at ₹2,986.50 on Thursday.

United Spirits: 23 'buy' recommendations out of 30 brokerages, with 3 'hold' and 4 'sell' calls. Stock rose 1.5% to close at ₹1,338.95.

Analysts project Radico Khaitan to deliver 30-35% earnings growth for FY27, while United Spirits is expected to achieve near-15% growth over the same period. The potential UK-India Free Trade Agreement remains a key catalyst for United Spirits, with expectations of improved Scotch pricing providing revenue and margin uplift from Q2 FY27.

Future Growth Drivers

Both companies are positioned to benefit from India's ongoing premiumisation trend, with multiple growth catalysts identified:

• Product Launches: Radico has rolled out 4-6 new products in FY26, planning expansion across more states
• Geographic Expansion: Wider distribution networks supporting premium brand traction
• Policy Developments: Delhi policy and IPL outcomes flagged as external triggers
• Trade Agreements: UK-India FTA potential for margin improvement

The contrasting Q3 performances reflect different market exposures and policy impacts, but both companies remain well-positioned to capitalise on India's evolving alcoholic beverage consumption patterns.